Expanding Luxury Fashion Empire
- Michael Kors acquires Versace for £1.6bn
- Renaming of Michael Kors Holdings to Capri Holdings
- Private equity firm Blackstone Group sells its stake
- John D Idol and Jonathan Akeroyd to remain in their roles
- Donatella Versace to stay as creative director
- Growing Versace’s global revenues to $2bn and retail footprint to 300 stores
Michael Kors has acquired Italian fashion house Versace for £1.6bn, with the deal expected to close in Q4 2019. Upon closing, Michael Kors Holdings will be renamed Capri Holdings, inspired by the iconic island. Private equity firm Blackstone Group sells its 20% stake. CEO John D Idol and Versace CEO Jonathan Akeroyd remain in their roles, while Donatella Versace continues as creative director. The new owners plan to grow Versace’s global revenues to $2bn and increase retail stores from 200 to 300. They aim for multiple years of revenue and earnings growth with the strength of Michael Kors and Jimmy Choo brands.
Factuality Level: 10
Factuality Justification: The article provides accurate information about the acquisition of Versace by Michael Kors, the renaming of the company, the roles of the CEOs and creative director, and their plans for growth. It also includes quotes from key figures in the deal.
Noise Level: 3
Noise Justification: The article provides relevant information about a significant acquisition in the fashion industry and includes statements from key executives involved in the deal. It also mentions plans for future growth of the combined companies. However, it lacks in-depth analysis or exploration of potential consequences or long-term trends.
Financial Relevance: Yes
Financial Markets Impacted: Michael Kors Holdings and Versace
Financial Rating Justification: The article discusses the acquisition of Versace by Michael Kors Holdings, which will impact the financial performance and growth strategies of both companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
www.retailsector.co.uk